Kiss the surplus goodbye: Labor

THERE is no chance of the Tasmanian Government returning a surplus from the current year’s budget — even with more spending cuts, Labor finance spokesman David O’Byrne says.

The Federal Government’s mid-year budget update on Monday revealed Tasmania will take a $75 million hit to its share of GST revenue next year and a State Government update on Friday revealed the budget was tracking $133 million worse than last year.

When he handed down the State Budget in May, Treasurer Peter Gutwein predicted a $57 million surplus.

However, Mr O’Byrne said there was no chance of that happening now.

“It will be nigh-on impossible for them to deliver a surplus,” he said.

“They’re already funding their current surplus out off an under-investment in infrastructure and chronically underfunding and underspending in the NDIS.

“That is not a sustainable surplus, and this body blow that we saw yesterday to the State Budget will mean this Government has got little or no hope of getting a surplus.”

Mr O’Byrne said the Government

was on the cusp of making further spending cuts.

“Cuts to essential services are on the way for Tasmanians already struggling to access good health services, struggling to get a roof over their head, and struggling to see results on infrastructure to deal with traffic congestion across the state,” he said.

“Treasurer Peter Gutwein, like Monty Python’s Black Knight, cannot say that this is a flesh wound. This is a body blow to the State Budget.”

Premier Will Hodgman yesterday said the surplus was safe. Treasurer Peter Gutwein said the state was well placed.

“We continue to buck the trend through disciplined, strategic budget management,” Mr Gutwein said.

“Our record $3.6 billion infrastructure program is designed to do exactly that, by sandbagging our local economy and supporting jobs and investment.

“While the GST writedown is beyond state control, our strong budget position and disciplined budget management, with a focus on growing our own source revenues, means we are well placed to manage the impact. We will have more to say regarding the budget position early in the new year when the Revised Estimates Report is released.”